A leading pension company is poised to distribute a share of £181 million in profits to 2.3 million customers within days. Royal London has announced its plans to allocate a substantial £181 million from its profits to 2.3 million customers, delivering a significant financial uplift.
Around 2.3 million eligible customers who hold pensions and life policies with Royal London are set to gain from the windfall as part of the company's profit-sharing scheme. Barry O'Dwyer, group chief executive, highlighted that the firm "is customer-owned and is run for the benefit of customers, not shareholders".
Royal London reported pre-tax profits of £277m for the year ending December 31, 2024, an increase from £249m the previous year, bolstered by a rise in new business across all its main product categories. The disbursements are scheduled for April 1, which means they will appear in customer accounts next week. If the £181 million fund were divided equally, it would translate to approximately £90 per customer.
Royal London has noted that the investment performance of its actively managed funds remains robust, with 60% surpassing their three-year benchmark on an AUM weighted basis and 81% exceeding expectations on an equally weighted basis, reports Birmingham Live.
O'Dwyer mentioned that the company has launched several digital enhancements aimed at helping customers strengthen their financial resilience, including a novel contribution guidance tool and additional improvements to its pension consolidation service.
O'Dwyer commented: "Our customer focus means we continually enhance our offerings and digital services to help customers build their financial resilience, often partnering with independent financial advisers. We have recently launched an innovative new online application process for individual pensions business, making it substantially easier for advisers to work with us."
The bonus payment figure has been revealed following the group's announcement of a rise in earnings for the year. The UK-based group reported an operating pre-tax profit of £277 million, which represents an increase of approximately 10% from the previous year.
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